Beijing said the step was a “small” one in correcting Trump’s “wrong practice” of imposing tariffs. US Commerce Secretary Lutnick meanwhile said Washington will impose separate tariffs on electronics and semiconductors.
China described the Trump administration’s decision to exempt consumer electronics from hefty import tariffs as a “small step” in correcting a “wrong practice.”
A Commerce Ministry spokesperson said on Sunday that Beijing was “now evaluating the impact” of this exemption.
After Trump upped levies on Chinese goods to 145% earlier this week, a notice by the US Customs and Border Protection office published late on Friday exempted smartphones, computers and other electronic goods entering the US.
However, US Commerce Secretary Howard Lutnick told ABC broadcaster that the US will introduce specific tariffs targeting smartphones, computers and some other electronic devices, as well as semiconductors.
Trump’s expanded tariffs policy has sent shockwaves across markets worldwide. The US president paused most of his tariffs for 90 days earlier on Wednesday, but excluded China, prompting Beijing to respond by boosting its own levies on US goods to %125.
How did China react to Trump’s exemption?
A Chinese Commerce Ministry spokesperson called on the US on Sunday to “completely cancel” its tariffs.
“We urge the US to… take a big step to correct its mistakes, completely cancel the wrong practice of ‘reciprocal tariffs’ and return to the right path of mutual respect,” the spokesperson said in a statement.
On Friday, Commerce Minister Wang Wentao warned in a call with the head of the World Trade Organization that tariffs would “inflict serious harm” on developing nations.
Chinese President Xi Jinping begins on Monday his five-day Southeast Asia tour, as Beijing strives to firm up financial alliances in the midst of a trade war with the US.
Xi is due to meet the leaders of Vietnam, Malaysia and Cambodia.
US to impose separate tariffs on electronics, semiconductors
Electronic giants heavily reliant on Chinese production, such as California-based Apple or Texas-based Dell, barely breathed a sigh of relief when reports emerged that the US was planning separate tariffs on smartphones, computers and semiconductors.
US Commerce Secretary Lutnick told ABC’s “This Week” that semiconductor tariffs would probably be coming “in a month or two.”
“We can’t be relying on China for fundamental things that we need: our medicines and our semiconductors need to be built in America,” Lutnick said.
US Trade Representative Jamieson Greer meanwhile said the exempted electronics would still be subject to tariffs. Instead of falling under reciprocal tariffs, electronics would now be levied under the national security tariff regime.
The latter requires an investigation before the imposition comes into effect and “where we have studies ongoing for pharmaceuticals, for semiconductors, metals, et cetera,” Greer said in an interview with CBS’ “Face the Nation.”
Trump has defended his policies, saying he aims to bring major productions to the US.
Most electronic equipment, especially smartphones are currently produced in Asia, and high tariffs translate to higher prices, including for US citizens, whom Trump had promised to bring down prices in his election campaign last year.
Edited by: Jenipher Camino Gonzalez
DW News
